Gergely Gulyás, Head of the Prime Minister's Office, told a government press briefing on Wednesday that the "coalition" of the mayor of Budapest, Gergely Karácsony, and the opposition Tisza Party has "bankrupted Budapest in less than a year".
Gulyás added that the sole responsibility for the problem lay with the capital's leadership. The government, he said, was "ready to help out", but the capital's operations must be investigated first.
Six years ago, Budapest was left with big reserves, Gulyás said. Insolvency, even last year, was not an issue, and the "Karacsony-Tisza coalition, by their own admission", bankrupted the city in less than a year, he added.
Budapest residents would suffer the consequences, he said, adding, however, that the government was ready to step in and provide help.
Beforehand, however, an examination was needed of why the city's leadership failed to manage its finances, even when business tax revenues "grew much more than the solidarity tax".
Csaba Latorcai, the prime ministerial state secretary for public administration and regional development, will head the probe, he said.